Market Analysis: Sellers Continue to Hold Their Ground
EURUSD bulls await revival as sellers maintain control. The market has been experiencing a lack of bullish momentum as sellers continue to hold their ground. Despite the efforts of the bulls, a solid breakthrough has yet to be achieved. Over the past few days, the price has been trading near the touchline of 1.08440. This indicates a lack of decisive movement in either direction. The weak momentum has also prevented the sellers from exerting significant downward pressure.
EURUSD Key Levels
Resistance Levels: 1.12940, 1.09990
Support Levels: 1.07240, 1.08440
The bulls have been making efforts to stage a recovery early this year. Their struggle was evident in their attempt to breach the significant zone of 1.09990. After a series of accumulations above the trend line zone, the bears were forced to retreat, allowing the bulls to gain some ground.
However, the currency pair is currently experiencing a lack of price volatility, with both traders failing to push the price higher. The momentum indicator, which measures the strength and direction of the trend, has been consistently below the 0.000 line since the start of the year. This indicates a lack of upward momentum and suggests that the market is currently favoring the sellers.
From a technical analysis perspective, the momentum being below the 0.000 line could be attributed to a variety of factors, such as a lack of buying pressure. It can also be a result of increased selling pressure or a shift in market sentiment towards the bearish side. Traders should closely monitor these technical indicators to gain insights into market dynamics.
Furthermore, the Relative Volatility Index, which measures the power drive in the market, is indicating low volatility at the moment. This further reinforces the current absence of strong price movements. It also suggests that it may take some time for the bulls to regain control and act more forcefully in the market.
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